Food & Beverage
F&N Beverages portfolio comprises the Soft Drinks and Beer businesses.
a) Soft Drinks
The formation of F&N Coca Cola Pte Ltd, a joint venture with The Coca-Cola Company in 1992 to be a regional anchor bottler for Coke, further strengthened a partnership that dates back to 1936 when Fraser and Neave, Limited ("F&N" or the "Group") secured the Coca-Cola franchise for Singapore and Malaysia. Through this partnership, F&N's soft drinks business was expanded over a larger region, including Singapore, Malaysia, Brunei, Vietnam, Cambodia, Sri Lanka, Nepal and Pakistan.
1996 was a landmark year of strategic restructuring in Malaysia, the stronghold of F&N's soft drinks business. In compliance with Malaysia's National Development Policy, the Group's glass, dairies and soft drinks operations in Malaysia were consolidated under the umbrella of Fraser & Neave Holdings Bhd.
F&N's soft drinks business was adversely affected by the 1997 Asian financial crisis and the regional recession that ensued. The uncertain outlook for the business prompted the Group to divest its majority share in F&N Coca Cola Pte Ltd to The Coca-Cola Company. The soft drinks operations in Malaysia under Fraser & Neave Holdings Bhd were, however, retained within the Group. A bold restructuring and rationalisation exercise by the Group has since returned Malaysian soft drinks business to profitability. Fraser & Neave Holdings Bhd's key focus is to strengthen its infrastructure to secure market leadership, and ensure its long-term growth and profitability.
The Group's Malaysia soft drinks division produces one of the region's favourite carbonated soft drinks brands F&N sparkling drinks as well as non-carbonated drinks like F&N SEASONS (Asian drinks), F&N FRUIT TREE (juice drinks) and 100PLUS (isotonic drinks).
2011 marked a new milestone for the soft drinks business as the Group's licensing agreements with The Coca-Cola Company came to an end and all its soft drinks brands returned home to its growing stable of brands. F&N regained full control of its soft drinks business in Singapore, ranging from manufacturing and marketing to sales and distribution. Its subsidiary, F&N Foods Pte Ltd, was appointed to be the sole distributor for all F&N beverages in Singapore. In Malaysia, the Group ceased to be the bottler for Coke, and Fraser & Neave Holdings Bhd would continue to distribute F&N beverages in Malaysia and Brunei.
Today, F&N has become a familiar household name. In its key markets of Singapore and Malaysia, F&N retains leadership positions in the food and beverage arena with well-recognised soft drinks brands such as 100PLUS and F&N sparkling drinks.
F&N's brewery business began with Asia Pacific Breweries Limited ("APB"). APB was founded in 1931 as a joint venture between F&N and Heineken NV of Holland. In 1932, the first brewery was opened in Singapore and soon after, Tiger Beer was launched as the original Singapore-brewed beer. In 2012, the Group sold its interests in APB to Heineken NV.
Today, with its longstanding heritage and experience in the beer business, the Group continues to brew and distribute beer through its 55%-owned Myanmar Brewery Ltd ("MBL"), which was established in 1995. MBL manufactures Myanmar's leading beer brands like Myanmar Beer, Myanmar Double Strong and Andaman Gold.
F&N began its entry into the dairy business in 1959 through a joint venture with Beatrice Foods International of the United States, in Malaysia. Shortly, it launched a totally new line of products, the sweetened condensed milk, as its major step forward in the establishment of a dairy industry in the ASEAN region. The Carnation Company, also from the US, joined the partnership in 1965 and renamed the operation, Premier Milk (M).
F&N's dairy business was further strengthened in 1968 when it acquired the dairy operations of Cold Storage Holdings, including the flagship F&N Magnolia brand, in Singapore. The expanded dairy business operated under the name of Asia Dairies, which has since been renamed F&N Foods Pte Ltd.
With this move, the Group developed new capabilities in producing and marketing pasteurised milk, sweetened condensed milk, milk powder, fruit juices, pasteurised soy, pasteurised tea, ice cream and yoghurt for the Singapore and Malaysia markets as well as for export to Brunei, Papua New Guinea, Hong Kong, Taiwan, Maldives, Australia and Africa.
In 1989, the Group acquired the interests of Beatrice Foods International in the joint venture and restructured its dairy operations under F&N Dairies (Malaysia) Sdn Bhd.
In 1999, F&N acquired a 60% stake in an ice cream business owned by United Foods Ltd in Thailand, an important first step in gaining a foothold in the Thai ice cream market. Later, the Group went on and acquired another 35% from its partner and renamed the business F&N United Limited. F&N United is today a major producer of novelty and take-home tub ice cream products for the Group as well as contract packs for customers throughout the Asia Pacific.
In February 2007, to corner the milk market in the region, F&N inked a RM285m deal to acquire Nestle's liquid canned milk business in Malaysia, Singapore, Indochina and Brunei. Under this transaction, F&N acquired Nestle's production facilities and equipment in Thailand, as well as the TEAPOT sweetened condensed milk brand. The acquisition of TEAPOT and licensing of Nestle's other canned milk products propelled the dairies business in Malaysia and Thailand, making F&N the No. 1 canned milk player in the ASEAN region.
Expanding its dairies product portfolio, the Group added the F&N aLIVE brand in 2008, offering consumers yoghurt and nutritional snack bars.
In 2010, F&N Holdings Bhd bought a 23.08% equity interest in Cocoaland Holdings Berhad, whose principal activities includes the manufacturing, trading and distribution of food and food-related products and beverages.
Following the acquisition of King's Creameries (S) Pte Ltd, the new ice cream division, F&N Creameries, was formed in February 2011 to consolidate the ice cream business in Singapore. Malaysia and Thailand.
Today, F&N is one of the leading dairy players in the Singapore, Malaysia and Thailand dairy industry with a portfolio of over 10 dairy brands in its portfolio. Some of the most trusted brand names include F&N MAGNOLIA, F&N DAISY, F&N FRUIT TREE FRESH, F&N NUTRISOY, F&N NUTRITEA, FARMHOUSE and MEADOW GOLD. To this day, F&N continues to offer top quality brands and innovative packaging to meet the individual needs of the dairy consumer through its wide distribution network and product mix.